Did you know that if you or any of your staff are involved in research and development (R&D), then a chunk of their salary becomes tax deductible? The Government has put aside a pot which, at the last count, had hefty £6billion sitting in it.
Why is the Government doing this? Simple; they see any form of research and development as being critical for any firm – small or large – and will eventually benefit the country as a whole. They understand that for every £1 that the HMRC pays out in R&D tax credits they see a return of approximately £2.50 from future R&D projects. In other words the Government see’s a clear return on their investment with a scheme that helps create innovation and ultimately jobs in the UK market.
Were you aware of that?
It would appear that either a lot of firms are totally oblivious to this potential saving, or they are not making full use of it.
And that’s where Lumo Tax, comes in. ” we know we aren’t first to the party with offering companies our services in processing their R&D tax credit claim, what we do bring is a confidence with 13 year’s experience and 100% success rate with successful claims. We will not only succeed in processing your claim but will also ensure that the claim that we submit will be the maximum that the client is entitled to”.
“A lot of firms in this region are involved in R&D relating to the Food and Drink industry, Technology, Engineering, Chemicals, Virtual Reality, Oil and Gas, Augmented Reality etc, but they are not maximising their potential claims”, said Joe Routledge, the Business Development Manager at Lumo Tax. “We work alongside firms and analyse precisely what is going on, who is contributing to the project, and how we can help the company claim exactly what they are due. In some cases we’re working on, this can amount to tens of thousands of pounds in tax credits that the company was unaware they were entitled to.
One thing is clear; Joe and his team need to be in at the start of projects or certainly at the very early stage. He can then help companies predict precisely what they can claim which, in turn, allows them to budget accordingly. However, if you are reading this and are already getting a sinking feeling that you’ve missed out on potential tax benefits, don’t panic because all is not lost.
“The good news is that if we arrive when a project is well and truly underway, we can actually work retrospectively and go back as far as two financial years,” added Joe. “We can then figure out whether the company has been missing out on any claims. The Government is very supportive of any R&D work at companies and are trying to help. Taxation is very complex and it easy for benefits to be overlooked…which is where we come in.”
Joe has worked at a variety of companies and seen precisely what goes on. He’s worked with Sage and a host of IT companies, and seen that R&D is critical to their futures. He’s also fully aware of the expense that R&D requires and how, yes, sometimes it can be a gamble. “Companies need help; they need to be able to have the confidence to take a gamble and put time and effort – and money- into R&D, and that’s why it is so important that they make full use of any benefits which are available to them. Here at Lumo Tax, we make sure that they get value for money.”
And why Lumo Tax? Well, just think of luminous, or the Lumiere Festival which comes to Durham. Lumo Tax help you shed some light on your potential tax benefits.
